Analyst from the company ForexMart (ForeksMart)
Commodity prices forecast on May 16
The precious metal reached a level of 1238, setting a new weekly high, but later dropped to 1230. On the background of the test in North Korea, a new ballistic missile, investors are once again go into safe assets. Also, gold is rising against the backdrop of a weak release from the United States. However, the approach of the Fed's meeting will increase pressure on gold and will be able to lower the metal in the bottom of the range, and maybe even lower. Forecast for today implies an increase in the region in 1240.
USD / CAD. 16.05. Couple in anticipation of OPEC meeting
As a result of positive news from OPEC and countries outside the cartel, the possibility of extending the agreement on the reduction of oil production in the world, the Canadian dollar rose against the US dollar, and finally left a long border of the rising channel. Quotes of the pair USD / CAD on Tuesday settled at around 1.3653. On it while Canadian growth is limited. Market participants are awaiting a final decision by OPEC to be adopted by May 25 at a meeting in Vienna.
Oil is also yet stopped its progress, so during the day, and perhaps up to the meeting, the dollar / loonie will mostly move horizontally on either side of the 1.3650 level.
NZD / USD. 16.05. Kiwi near the support level 0.6860
The New Zealand dollar, being one of the commodity currencies, also reacted to news of rising OPEC and more probable extension of the Vienna agreement on the reduction of world oil production. The pair NZD / USD in recent trading characterized by high volatility, the graph shows the significant fluctuations in pairs in the range 0,6817-0,6951. On Tuesday, the pair quotes are located near the support level of 0.6860. Break of this level will give the development a further downward movement of the pair, with the aim of 0.6820.